Aggregate Demand, Macroeconomics, *Social Security

The great changes in social security laws which have taken place in the United States since World War II and the likelihood that others will take place in the future make it important to understand what effects these changes have on the rest of _the economy. This study, adapted from the author's 1967 dissertation at the University of Michigan, focuses on the macroeconomic aspects of both Old Age, Survivors, Disability, and Health Insurance and State Unemployment Insurance. Its purpose is to assess how changes in contribution rates, the'taxable maximut per employeeu and the level of benefits affect the level and stability of aggregate demand. It was found that changes in contribution rates exert a sizeable effect on real GNP and prices, and that social insurance lends considerable stability to demand in the economy. (BC